Shares of Newegg Commerce Inc. (NASDAQ:NEGG) are trading higher Wednesday amid the company’s annual FantasTech Sale.
What To Know: Newegg began rolling out deep discounts on a wide range of tech products, including gaming PCs, components and accessories. The sale, now in its eleventh year, runs from July 7 through July 13 and spans more than 50 product categories on the company's U.S. and Canadian platforms.
Several major retailers are running sales this week to compete with Amazon’s Prime Day event.
The stock move reflects investor expectations that the limited-time promotion will drive a short-term bump in sales volume during what is typically a slower retail period. The company is targeting price-sensitive PC builders and tech hobbyists with discounts on high-demand hardware, including Intel and AMD processors, Nvidia graphics cards and other computing components.
Beyond product markdowns, Newegg is also offering automatic refunds to customers who bought FantasTech-marked items between June 20 and July 6 if prices drop further during the sale period. This type of pricing guarantee may improve consumer trust and help limit buyer hesitation.
The rally comes amid low expectations for e-commerce names outside of Amazon. Newegg shares are now up approximately 28% over the past week. The move may also be partly due to high short interest. Nearly 18.5% of the float is currently sold short, according to Benzinga Pro data.
NEGG Price Action: Newegg shares were up 17.1% at $21.91 at the time of publication Wednesday, according to Benzinga Pro.
Read Next:
Image via Shutterstock.
